At the Agricultural Economic Insights booth at the 2023 National Association of Farm Broadcasters Convention, Farm Director KC Sheperd had the chance to talk with Farmland Analyst Randy Dickhut about an outlook on farmland purchases for 2024.
Agricultural Economic Insights, LLC was founded in 2014 by Dr. Brent Gloy and David Widmar. Recognizing an opportunity to provide timely, in-depth analysis about key agricultural economy trends, Brent and David began by writing weekly articles focused on insights.
In addition to the Weekly Insights articles, Brent and David regularly speak at farm and agribusiness events, focusing on key trends impacting the farm economy. AEI.ag also provides the Crop Budget Outlook – forwarding looking crop budget estimates and commentary to help with key strategic and planning activities.
Dickhut’s role comprises of writing various articles throughout the month, mainly on focusing on the farmland market.“I think 2023 was somewhat surprising as it ends up here, because as we entered into the year, in the land market, there was less for sale, it was slower, we weren’t seeing any new record prices that had been set the last couple of years, interest rates were higher, input costs were higher, farm incomes were going to be down, and so I thought, ‘well, that puts some pressure on the land market,’” Dickhut said. “But really, the land market just plateaued and stabilized. There was good buying interest throughout the year, and especially this fall.”
Looking into 2024, Dickhut said he believes higher interest rates could impact new land purchases where buyers are having to borrow.
“Naturally, higher interest rates raise their cost of owning that property, so they may not bid quite as much,” Dickhut said. “Lower commodity prices except in the cattle market are going to lower some of those farm incomes. It is going to soften the outlook a bit.”
